What does the interest rate you determine represent?

Q: How does the credit card company calculate the interest payment?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Interest earned with an annuity due is higher than that with an ordinary annuity. Do you agree or…

A: An annuity is a series of payments paid or received over a defined length of time. The timing of the…

Q: risks that investors undertake when they choose to purchase shares of companies

A: Company tends to issue shares in the market to raise fund for expanding operation of firm. But…

Q: Why does the user of an income statement need to know the time period that it covers?

A: Income statements are a record of all income received by an individual from different sources in…

Q: Give an example of a loan repayment plan?

A: A loan repayment plan shows the way in which loan will be repaid. It explains in detail the number…

Q: what is an investment for?

A: The word "capital formation" refers to a country's net capital accumulation over a specific…

Q: Interest:

A: ‘Interest’ is the payment that needs to be paid by the ‘borrower’ to the ‘lender’.   In other words…

Q: On what factors does The cost of a loan depend?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: What is fractional ownership?

A: Ownership:The term ownership refers to the legal right or exclusive right over the commodity. For…

Q: What is the Decision Rule for simple Investments?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: What are the potential savings?

A: Total disposable income of a person can be used for consumption and investment expenditures and for…

Q: Distinguish between Simple interest and Compound Interest?

A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: What is the cheapest loan?

A: A loan is the lending of money by an individual or a group to another individual or a firm, with an…

Q: When is the simple interest scheme used?

A: Simple interest is a method which is used to calculate interest charged on fixed deposit, loan and…

Q: Explain time and interest rate effect on future value?

A: Interest rate: It is the rate of earning in a specific time period on the investment.

Q: Distinguish between Simple investments and Nonsimple Investments?

A: The investments are an important factor for the growth of the economy which cannot grow without the…

Q: Write the different loan terms?

A: A loan is when one or more people, organisations, or other institutions lend money to other persons,…

Q: What is the future amount is due at the end of the loan period

A: Here T = 13 months     R = 20%    P = 2000

Q: Interest rates: why are interest rates increasing on student loans or mortgages?

A: Secured Loan:- A secured loan is one that is supported by secured financial assets owned by the…

Q: How to analyze the rate of interest?

A: The interest rate is the percentage of the amount paid by the borrower to the lender in a given…

Q: What type of professional is trained to help you save for retiremer O financial planner O auditor O…

A: A professional helps people to manage and plan the finances prudently. Such planning helps the…

Q: What would be the value of APS if savings is half that of income.

A: The data presented is that the savings of the household is half that of income.  So if income is Y…

Q: Write the formula of Effective interest?

A:

Q: How to convert daily interest rate into monthly interest rate?

A: Calculating the annual equivalent of a daily charge or per diem interest, or compounding annual…

Q: How can we calculating effective Interest Rates based on Payment Periods?

A: The effective annual interest rate is the interest rate on investment or return on a savings account…

Q: What is the main difference between personal and disposable personal income?

A: Personal income is total payment to individual either productive income or else, it can include…

Q: What is the Deferred Savings Plan?

A: A  deferred savings plan is a plan  which allows the taxpayer to pay money in  the plan and  then…

Q: Differentiate between Simple interest and Compound interest?

A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…

Q: What is Compound interest?

A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…

Q: The first thing paid when repaying a loan is the principal. True or False?

A: Principal denotes the original amount of money borrowed by the individual for meeting his/her needs.…

Q: List the elements of Transactions involving Interest?

A: Interest is a charge made to a lender in addition to the principal by a borrower, and it is a…

Q: Write the Summary of Compound-Interest Formulas?

A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…

Q: The is an initial payment toward the purchase of the item financed.

A: Credit purchase refers to a type of purchase in which the buyer does not make a payment through cash…

Q: You save $1500 a year into a 401(k) account that you invest in a mutual fund earning 7% per year.…

A: Here, by analyzing the information, it can be said that: Annuity (A): $1500 Interest rate (i): 7%…

Q: how to calculate future value

A: Future value is calculated with the help of interest rate along with the present value and time…

Q: What is a transfer payment?

A: A transfer payment is a unilateral payment transferred to a person who has not exchanged money,…

Q: What is a bond?

A: Bonds are fixed income securities and acts as a loan to a borrower. It is a kind of contractual…

Q: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: What is the Times-Interest-Earned Ratio?

A: Times interest earned (TIE) ratio measures the ability of company to meet its debt obligations based…

Q: What does the interest rate measure?

A: Market interest rate refers to the interest rate that the lenders expect or demands from the…

Q: Causes and effects of low interest rates

A: The interest rate is determined by the intersection of demand and supply of loanable funds. It is…

Q: years from now at an interest rate of

A:

Q: How does amortization help in making loans affordable?

A: Concept Amortization is the technique of repaying a loan in monthly interest and principal…

Q: What are objectives on interest rate spread

A: When talking about interest rate spread, it is considered as the difference in the interest rate…